ReelDirector
Very interesting. At first I thought there is just no way to edit video on the iPad, but here you decide after watching the video. I have to say – I would love to edit video like that, yet maybe on a bigger screen and with lots of multi touch gestures – think Minority Report 
Featured as BEST APP on Apple’s Rewind 2009 list, ReelDirector is the first and only app to bring real video editing to mobile platform.
Features
- New – import music files from computer and use as soundtracks.
- Add and stitch together clips, drag-and-drop to rearrange order.
- Add text watermarks of title, opening credits and closing credits with 4 styles and 9 positions to choose from.
- Put transitions between clips to smooth or blend the change from one scene to another. With 27 transitions to choose from, create professional looking videos with ease and fun.
- Add photos with Ken Burns effect.
- Record voiceover and mix soundtracks.
- Nondestructively trim imported clips; seamlessly split video into 2 or 3 clips.
- Share your movies by email or save to Camera Roll.
Hey there – I was googling a good free video editing app for the kindergarten ipad and came across your article here on your blog. I should have thought of you before googling LOL. You posted this in May 2010 – is this still the ipad video editing app you would recommend? Cheers Beverly
sorry for the late reply